Imagine this: You have a Health Savings Account (HSA) and your health plan has a high deductible feature. Now, because of the IRS rules, you need to comply with it and then make mid-year changes. Or because of newer regulations, one cannot help but face certain changes especially the rising of the HSA limits. If you are in a dilemma as to how to go about with it, this will surely give you some information and tips on how to deal with such changes.
Indeed, it can be very frustrating if you’d realize that there has been another increase in the HSA limit. But one has to realize that these changes are but normal and are usually expected in this program. In fact, this year 2019, the HSA contribution for members whose coverage is for themselves only will definitely increase by $50. Now, for those account holders of HSA which has a family coverage, the said limit will increase by $ 100 that is in excess of the family max cap which was initially set for the year 2018. However, for this year, the HSA catch up contribution will remain the same and that is at $ 1,000 for those account holders having the age of 55 years old and over.
Why there is a need to increase?
The limits for HSA is really expected to change on a yearly basis. But one has to anticipate that such changes cover basically for its increase. But it is none without reason. And besides, such increase will not just happen overnight. This will be announced earlier in the semester preceding such increase.
There is a reliable reason as to why such increases are to be made. Basically, its main reason is to increase the fund intended for health care which is deemed to be consumed in the present years, in the future and especially during the retiring age of the plan holders.
The reason why there is an increase is to maintain the value of the medical benefits that they are offering especially in the coming years taking into consideration the inflation rate and other factors that would determine the value of the dollar in the economy.
This is further a good basis for employers to take this into serious consideration so that they can better provide their employees with better health care programs with the given changes in the HSA limits.